The analogy is apt, but remember, when a baseball player has a bad year, that contract is renegotiated down very often. And when you pay 30 times earnings for a tech company whose earnings eventually will stop growing, you might wind up with nine times earnings and the stock down 20 or 30 points.
More Quotes from Lou Ehrenkrantz:
I hope they don't end up driving cabs in a couple days.Lou Ehrenkrantz
I would by very suspicious of any utility company that raises a dividend. We're on the eve of deregulation, and that will cause competition in the area that is going to cost a fortune.
Lou Ehrenkrantz
You look for undervalued stocks by looking at industries that have been overlooked.
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I don't think the market can go much higher, and I don't think the Dow Jones average will immediately go to 10,000 or anything like that. I think we've seen the great rise. That doesn't mean we're going to see a terrible decline, but I think the great rise is over and caution is the word.
Lou Ehrenkrantz
When you drop a ball from the top of a building it will bounce a couple of times.
Lou Ehrenkrantz
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Based on Topics: Baseball Quotes, Metaphor & Analogy QuotesBased on Keywords: renegotiated
The larger the state, the more callous it becomes... the colder its heart. It is also true that the bigger the corporation, the more callous its heart. But unlike the state, corporations have competition and have no police powers.
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